Stanford University to eliminate 363 workers as federal funding cuts, tax hikes hit home

FILE: The Stanford University campus on Sept 9, 2009. The university announced Wednesday that it expects to lay off 363 employees as part of $140 million in budget cuts for the 2025-26 academic year. (Ananda Paulas/Bay City News)

Stanford University plans to lay off more than 360 employees due to budget cuts amidst federal policy changes, according to a university spokesperson.

In June, the university announced it would impose a $140 million budget cut for the 2025-26 academic year owing to reductions in federal research support and an increase in the endowment tax.

“We need to be realistic about the current landscape and its consequences,” university president Jonathan Levin and provost Jenny Martinez wrote in the announcement. “There is significant uncertainty about how federal support for universities will evolve, but it is clear that the status quo has changed.”

Last month, President Donald Trump signed the One Big Beautiful Bill Act into law, imposing an 8% tax on the net investment income for universities with an endowment of over $2 million per eligible student, including Stanford.

The university expects to lay off a total of 363 positions, university spokesperson Luisa Rapport said.

“There is significant uncertainty about how federal support for universities will evolve, but it is clear that the status quo has changed.”

Jonathan Levin, Stanford University president

San Mateo County Board of Supervisors president David Canepa called the cuts a “direct result of the so-called ‘Big Beautiful Bill’, a devastating piece of federal legislation that prioritizes politics over people.”

“Stanford’s announcement that it is laying off hundreds of hardworking employees is a gut punch to our local economy and to families already struggling to make ends meet,” Canepa said. “I stand with the workers, not with the ivory towers or reckless federal overreach.”

Stanford plans to offer support resources and layoff benefits to eligible employees, according to a statement from Levin and Martinez released Thursday.

“These are difficult actions that affect valued colleagues and friends who have made important contributions to Stanford,” Levin and Martinez wrote. “Thank you for your hard work, for your support of your colleagues, and for all of your efforts to support our vital ongoing mission of research and education.”

The post Stanford University to eliminate 363 workers as federal funding cuts, tax hikes hit home appeared first on Local News Matters.

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